Swedish residential developer Bonava has sold its operations in St. Petersburg, Russia, to Armenia’s Star Development for €50 mln.
The transaction is subject to the approval of the Russian competition authority, which is expected in Q4 2023.
In St. Petersburg, Bonava had two residential projects, Magnifika and Gröna Lund, both covered by the Russian Green Zone certification.
The multi-family housing projects are aimed at both consumers and investors.
This is the latest step in Bonava's efforts to divest its St. Petersburg operations, after its previous agreement with RBI Group fell through in May 2023.
Bonava announced in March 2022 that it would be discontinuing its operations in St. Petersburg in response to the Russian invasion of Ukraine.
The sale of Bonava's St. Petersburg operations is expected to generate positive earnings of approximately SEK 550 mln (€47 mln) for the company.
